I’ve been working for my company for almost 5 years – 4 years, 11 months and 10 days to be precise (just 20 days shy of 5 years). I recently applied for gratuity but was denied, as they say I haven’t completed 5 years. My company cites Section 4 of the Act and our employment contract stating that I should have worked for at least 5 years before leaving to be eligible. Is my claim valid? If so, what steps should I take to pursue it?
Best Answer
Based on the Payment of Gratuity Act, 1972, you are eligible for gratuity as you have completed 4 years, 11 months and 10 days of continuous service. Your company’s claim of needing 5 years is incorrect, and you should raise this issue with your employer. If they refuse, you can approach the Labour Commissioner or file a claim in the Labour Court.
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